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Last Updated : Aug 23, 2019 02:35 PM IST | Source:

Aviation stocks fly high as IndiGo maintains pole position in July market share, SpiceJet trails

InterGlobe and SpiceJet shot up around 60 percent each in last nine months, thanks to suspension of airline services by cash-strapped Jet Airways which resulted into higher ticket prices and stable crude oil prices.

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Aviation stocks gained strength on August 23 after July aviation data revealed low-cost air carrier IndiGo and SpiceJet maintained their number 1 and number 2 position in market share respectively.

InterGlobe Aviation, the operator of IndiGo, gained 0.8 percent intraday and was trading at Rs 1,625.75, up Rs 5.85, or 0.36 percent on the BSE at 13:56 hours IST.

SpiceJet shares rallied 2.2 percent intraday and was quoting at Rs 133.00, up Rs 1.55, or 1.18 percent on the exchange.


Both stocks shot up around 60 percent each in the last nine months, primarily driven by the suspension of cash-strapped Jet Airways which resulted into higher ticket prices and stable crude oil prices.

Also read: After a period of turbulence, the aviation sector finally sees clear sky

The domestic air passenger traffic in July increased by just 3.01 percent to 11.90 million passengers compared to July last year primarily due to the end of tourist season, according to the data released by aviation regulator DGCA on August 22.

The domestic passenger growth was 6.19 percent YoY in June this year.

Citi said excluding Jet Airways from the base, the industry domestic passenger growth would have been 21 percent YoY.

IndiGo maintained its leadership with 47.8 percent share of the domestic passenger market in July while SpiceJet's market share decreased from 15.6 percent in April to 15.5 percent in July, giving it the number two spot, as per the data.

While having neutral call on InterGlobe Aviation, CLSA said IndiGo's market share is largely steady. "Market share trends would be more organic & steady."

"The conflict between InterGlobe promoters Rahul Bhatia and Rakesh Gangwal remained an overhang for the stock and we would keenly watch out for any announcements after Annual General Meeting on August 27," the brokerage said.

However, the passenger load factor - measures the seating capacity utilization - of all the major airlines -- Air India, IndiGo, SpiceJet, GoAir, AirAsia and Vistara -- declined in July as compared to June 2019, as per the DGCA data.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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First Published on Aug 23, 2019 02:35 pm
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